Creating budget for her recently awarded research grant

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Reference no: EM132065685

Professor Shelley is creating a budget for her recently awarded research grant. Her research requires a heavy-duty generator that has an initial cost of $26759. She estimates she will need to pay for maintenance on the generator beginning at the end of year 5. She will pay maintenance costs each year for the next 5 years. At that point, she will either scrap her research or submit a new research proposal. She estimates the first year of maintenance will cost $459, with the maintenance costs increasing by $87 per year for each year after that. How much should she put in her budget for maintenance costs? She is using a 5% interest rate.

Reference no: EM132065685

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